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Trade facilitation impacts: approaches to model "just-in-time" delivery

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  • Sorescu, Silvia
  • Flaig, Dorothee

Abstract

The predictability, reliability, and time sensitivity of trade flows are important factors behind firms’ decision about a location. They condition the capacity of lead firms and intermediate producers in GVCs to satisfy demand in a timely manner. Reliable, predictable, and timely access to inputs and final products are, in turn, highly dependent on good infrastructure and efficient borders. Well-functioning trade facilitation (TF) measures enable trade by reducing the time, cost, and uncertainty involved in importing and exporting. This study analyses the impacts of TF reforms by evaluating the ability of two approaches – iceberg and Willingness to pay – to assess the economy-wide impacts of trade facilitation improvements. For this purpose the OECD METRO model is used to delve deeper into the two following research questions: What are the effects of TF reforms and how does the choice of modelling TF affects the outcomes? What is the interplay between supply and demand effects in assessing TF reforms across different sectors?

Suggested Citation

  • Sorescu, Silvia & Flaig, Dorothee, 2017. "Trade facilitation impacts: approaches to model "just-in-time" delivery," Conference papers 332893, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332893
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